Results of the first five months of the year, released by the Central Bank indicates that bank credit to households has increased by 89 percent to GH¢856.3 million compared with 49 percent increase for the same period in 2007.

This means many individuals accessed loans from financial institutions over the last year.

At the same time, credit to the private sector alone rose by GH¢1.206 billion compared with GH¢776.5 million (47.8 percent) during the same period in 2007.

According to the Monetary Policy Committee of the Bank of Ghana report, distribution of the annual credit flow was fairly broad-based as all sectors recorded some increase in credit over the period.

While the services sector recorded 42.4 percent, miscellaneous accounted for 13.3 percent and construction recorded 10.7 percent.

Manufacturing and commerce and finance accounted for 8.5 and 6.8 percent with transportation, storage and communication accounting for 5 percent.

Meanwhile the banking industry continues to show strong asset growth.

According to the MPC report, total assets of the banking industry as at the end of May 2008 stood at GH¢8.437 billion, a 4.4 percent growth over the level at the end of March 2008.

With two new banks, namely Bank Sahelo and Bank of Baroda joining the train this year, the banking industry continues to become the most attractive sector, contributing significantly to the Gross Domestic Product (GDP) of the country.

According to the MPC statement, growth in assets was mainly funded by deposits which amounted to GH¢5.499 billion.

Instructively, the quality of the banking industry’s loan portfolio remained generally strong with non-performing loans (NPL) standing at 8.8 percent at the end of May 2008, compared with 8.7 percent at the end of March 2008.